If you’re a small business, you may be focused on how the new tax laws will affect your company’s future tax returns. Meanwhile, the 2017 tax return deadline for individual filers and sole proprietor or single member LLC small businesses is looming. This year, the ubiquitous April 15 deadline was extended by two days (April 17, 2018). Other types of businesses would have had to meet 2017 tax deadlines earlier in 2018 or are subject to quarterly payments – so you may want to switch to extension mode and think about taking advantage of current tax breaks that will be phased out with your 2018 tax returns.
The type of tax entity a company is determines their tax deadlines. While converting to an LLC or S-Corporation may seem advantageous, it is prudent to weigh your options. If you are considering incorporating to take advantage of the new 2018 tax changes, you would need to meet tax deadlines earlier than those you may be used to meeting. Learn more about official federal income tax return due dates here and talk to a tax professional to determine what is the best move for your company.
What Deductions Could I Take on My 2017 Business Taxes?
After 2017, companies can no longer deduct entertainment as a business expense. They can still claim client meals. For example, if your sales staff takes a client to a baseball game, you can only claim the food eaten at the game. The game tickets will not be deductible.
Can I Still Claim My Home Office for My Business?
After 2017, any room you claim as an office must be 100% dedicated to your company. It cannot be an office/guest room. The IRS is cracking down on individuals claiming an office is any space with a computer in it. Phone, internet and supplies must be solely for the function of the office. If you are a sole proprietor and work out of your home, seek the expertise of a tax professional to help you review what you can itemize on your 2018 tax return. With the new standard deductions, you may find itemizing is no longer beneficial.
In 2018, Will the Loss of Business Deductions Affect My Company?
Many of the eliminated deductions are those individuals claim on their 1040 Schedule A forms. Business owners file Schedule C forms. The new changes do not affect their deductions.
Should I Convert from a Sole Proprietor to an LLC?
If you are considering incorporating due to the loss of Schedule A itemized deductions, you may find limited benefits. Costs are involved in incorporating and maintaining an LLC. Tax deductions reduce your overall taxable income. They do not reduce your tax bill on a dollar per dollar basis.
Dutton Legal Group – Indiana’s Tax Resolution Law Firm
We know small business is big in Indiana. Dutton Legal Group helps the people and businesses of our state navigate ever-changing State and Federal tax codes. Our goal as experienced tax attorneys is to assist you in finding an immediate, cost-effective answer to your tax challenges. We provide a variety of tax services from balance resolution and return preparation to wage garnishment relief and audit assistance. Stop worrying about your company taxes and get back to business. Make Dutton Legal Group your next call at 1-800-334-0255 or send an email to request a free consultation. Trustworthy and affordable, for over 15 years.